BUYING A SMALL BUSINESS - BLANK MODEL SET: THE BOOK'S OWN INPUTS

Each workbook has its own Inputs sheet. Type these values into it and the book's results come back.
Cell references are on the Inputs sheet. Leave 'Appraised value' and 'Exit multiple' blank, as the book does.

Cedar_Ridge_Acquisition_Model_Blank.xlsx  (Deal A, Cedar Ridge Mechanical: 68 inputs)

   Inputs!B5    Revenue, year 1 of 3                                                          4620
   Inputs!B6    Reported pre-tax income, year 1 of 3                                          431
   Inputs!B7    Revenue, year 2 of 3                                                          4980
   Inputs!B8    Reported pre-tax income, year 2 of 3                                          488
   Inputs!B9    Revenue, year 3 of 3                                                          5310
   Inputs!B10   Reported pre-tax income, year 3 of 3                                          540
   Inputs!B13   Broker: Owner's salary                                                        180
   Inputs!B14   Broker: Owner's vehicle, phone and insurance                                  38
   Inputs!B15   Broker: Depreciation                                                          72
   Inputs!B16   Broker: Interest                                                              14
   Inputs!B17   Broker: One-time legal settlement                                             25
   Inputs!B18   Broker: Spouse on payroll (non-working)                                       48
   Inputs!B19   Broker: Employer payroll taxes on owner and spouse pay                        0
   Inputs!B22   QoE: Owner's salary                                                           180
   Inputs!B23   QoE: Owner's vehicle, phone and insurance                                     23
   Inputs!B24   QoE: Depreciation                                                             72
   Inputs!B25   QoE: Interest                                                                 14
   Inputs!B26   QoE: One-time legal settlement                                                0
   Inputs!B27   QoE: Spouse on payroll (non-working)                                          48
   Inputs!B28   QoE: Employer payroll taxes on owner and spouse pay                           16
   Inputs!B29   Rent paid to seller (related party)                                           36
   Inputs!B30   Market rent the buyer will pay                                                72
   Inputs!B31   QoE: Customer deposits booked as revenue early (cash to accrual)              -31
   Inputs!B32   Market salary for the buyer as manager (incl. payroll burden)                 150
   Inputs!B35   Asking multiple of broker SDE                                                 3.5
   Inputs!B36   Purchase price                                                                2600
   Inputs!B38   Working capital delivered at the peg: Receivables                             410
   Inputs!B39   Working capital delivered at the peg: Parts inventory                         120
   Inputs!B40   Working capital delivered at the peg: Less payables                           -155
   Inputs!B41   Working capital delivered at the peg: Less customer deposits                  -95
   Inputs!B42   Operating cash cushion funded by the buyer (seller keeps the cash)            150
   Inputs!B43   Closing costs: QoE, valuation, legal, other (capitalized into tax basis)      95
   Inputs!B44   Valuation cap applies to: 1 = the whole loan (book's base case), 0 = the price only  1
   Inputs!B45   Catch-up capex financed at closing (0 = paid from cash flow)                  0
   Inputs!B46   Equity injection, % of total uses (SOP 50 10 8.1)                             0.1
   Inputs!B47   Seller note on full standby, % of uses (max half the injection)               0.05
   Inputs!B48   Standby note interest rate (accrues, unpaid)                                  0.06
   Inputs!B49   Amortizing seller note, % of price                                            0.1
   Inputs!B50   Amortizing seller note rate                                                   0.07
   Inputs!B51   Amortizing seller note term (years)                                           5
   Inputs!B54   Prime rate (WSJ, 18 Sept 2026)                                                0.07
   Inputs!B55   Spread over prime (cap for loans > $350,000 is 3.00%)                         0.03
   Inputs!B56   Term (years; 10 max for non-real-estate)                                      10
   Inputs!B57   Minimum DSCR, initial acquisition                                             1.25
   Inputs!B58   Fee, loans up to $150,000 (85% guaranteed)                                    0.02
   Inputs!B59   Fee, loans $150,001-$700,000 (75% guaranteed)                                 0.03
   Inputs!B60   Fee above $700,000: on guaranteed portion up to the tier                      0.035
   Inputs!B61   Fee above $700,000: on guaranteed portion above the tier                      0.0375
   Inputs!B62   Tier (guaranteed portion)                                                     1000
   Inputs!B65   Revenue and EBITDA growth a year                                              0.04
   Inputs!B66   Normal capex, year 1 (grows)                                                  110
   Inputs!B67   Catch-up capex, year 1                                                        150
   Inputs!B68   Catch-up capex, year 2                                                        60
   Inputs!B69   Price allocated to equipment and vehicles                                     420
   Inputs!B70   Bonus depreciation (1 = 100% expensing, 0 = straight line)                    1
   Inputs!B71   Straight-line life, equipment (years)                                         5
   Inputs!B72   Straight-line life, capex (years)                                             5
   Inputs!B73   Goodwill tax life (years)                                                     15
   Inputs!B74   Effective ordinary tax rate (simplified)                                      0.3
   Inputs!B75   Loss carryforward usable per year, % of taxable income                        0.8
   Inputs!B76   Tax loss use: 1 = carried forward, 2 = against other household income, 3 = never used  1
   Inputs!B77   Economic life of the fleet, for its market value at exit (years)              7
   Inputs!B78   Capital gains rate on gain above recapture                                    0.2
   Inputs!B81   Exit at end of year                                                           5
   Inputs!B83   Selling costs, % of gross value                                               0.06
   Inputs!B86   Revenue shock starts in year                                                  2
   Inputs!B87   Revenue lost, % of latest-year revenue                                        0
   Inputs!B88   Contribution margin on lost revenue                                           0.4

Tri_County_Acquisition_Model_Blank.xlsx  (Deal B, Tri-County Commercial Cleaning: 65 inputs)

   Inputs!B5    Revenue, year 1 of 3                                                          3050
   Inputs!B6    Reported pre-tax income, year 1 of 3                                          262
   Inputs!B7    Revenue, year 2 of 3                                                          3260
   Inputs!B8    Reported pre-tax income, year 2 of 3                                          291
   Inputs!B9    Revenue, year 3 of 3                                                          3400
   Inputs!B10   Reported pre-tax income, year 3 of 3                                          318
   Inputs!B13   Broker: Owner's salary                                                        120
   Inputs!B14   Broker: Owner's vehicle, phone and insurance                                  22
   Inputs!B15   Broker: Depreciation                                                          18
   Inputs!B16   Broker: Interest                                                              6
   Inputs!B17   Broker: One-time recruiting fees                                              30
   Inputs!B18   Broker: Employer payroll taxes on owner pay                                   0
   Inputs!B21   QoE: Owner's salary                                                           120
   Inputs!B22   QoE: Owner's vehicle, phone and insurance                                     12
   Inputs!B23   QoE: Depreciation                                                             18
   Inputs!B24   QoE: Interest                                                                 6
   Inputs!B25   QoE: One-time recruiting fees                                                 0
   Inputs!B26   QoE: Employer payroll taxes on owner pay                                      9
   Inputs!B27   Rent paid to seller (related party)                                           0
   Inputs!B28   Market rent the buyer will pay                                                0
   Inputs!B29   QoE: Crew paid as 1099 contractors, reclassified as employees                 -41
   Inputs!B30   Market salary for the buyer as manager (incl. payroll burden)                 110
   Inputs!B33   Asking multiple of broker SDE                                                 3.59922178988327
   Inputs!B34   Purchase price                                                                1590
   Inputs!B36   Working capital delivered at the peg: Receivables                             330
   Inputs!B37   Working capital delivered at the peg: Supplies                                20
   Inputs!B38   Working capital delivered at the peg: Less payables and accrued payroll       -150
   Inputs!B39   Operating cash cushion funded by the buyer (seller keeps the cash)            100
   Inputs!B40   Closing costs: QoE, valuation, legal, other (capitalized into tax basis)      70
   Inputs!B41   Valuation cap applies to: 1 = the whole loan (book's base case), 0 = the price only  1
   Inputs!B42   Catch-up capex financed at closing (0 = paid from cash flow)                  0
   Inputs!B43   Equity injection, % of total uses (SOP 50 10 8.1)                             0.1
   Inputs!B44   Seller note on full standby, % of uses (max half the injection)               0.05
   Inputs!B45   Standby note interest rate (accrues, unpaid)                                  0.06
   Inputs!B46   Amortizing seller note, % of price                                            0.1
   Inputs!B47   Amortizing seller note rate                                                   0.07
   Inputs!B48   Amortizing seller note term (years)                                           5
   Inputs!B51   Prime rate (WSJ, 18 Sept 2026)                                                0.07
   Inputs!B52   Spread over prime (cap for loans > $350,000 is 3.00%)                         0.03
   Inputs!B53   Term (years; 10 max for non-real-estate)                                      10
   Inputs!B54   Minimum DSCR, initial acquisition                                             1.25
   Inputs!B55   Fee, loans up to $150,000 (85% guaranteed)                                    0.02
   Inputs!B56   Fee, loans $150,001-$700,000 (75% guaranteed)                                 0.03
   Inputs!B57   Fee above $700,000: on guaranteed portion up to the tier                      0.035
   Inputs!B58   Fee above $700,000: on guaranteed portion above the tier                      0.0375
   Inputs!B59   Tier (guaranteed portion)                                                     1000
   Inputs!B62   Revenue and EBITDA growth a year                                              0.03
   Inputs!B63   Normal capex, year 1 (grows)                                                  25
   Inputs!B64   Catch-up capex, year 1                                                        0
   Inputs!B65   Catch-up capex, year 2                                                        0
   Inputs!B66   Price allocated to equipment and vehicles                                     90
   Inputs!B67   Bonus depreciation (1 = 100% expensing, 0 = straight line)                    1
   Inputs!B68   Straight-line life, equipment (years)                                         5
   Inputs!B69   Straight-line life, capex (years)                                             5
   Inputs!B70   Goodwill tax life (years)                                                     15
   Inputs!B71   Effective ordinary tax rate (simplified)                                      0.3
   Inputs!B72   Loss carryforward usable per year, % of taxable income                        0.8
   Inputs!B73   Tax loss use: 1 = carried forward, 2 = against other household income, 3 = never used  1
   Inputs!B74   Economic life of the fleet, for its market value at exit (years)              7
   Inputs!B75   Capital gains rate on gain above recapture                                    0.2
   Inputs!B78   Exit at end of year                                                           5
   Inputs!B80   Selling costs, % of gross value                                               0.06
   Inputs!B83   Revenue shock starts in year                                                  2
   Inputs!B84   Revenue lost, % of latest-year revenue                                        0
   Inputs!B85   Contribution margin on lost revenue                                           0.22
